Once you retire, there are a number of costs that might eat up a large chunk of your budget. Housing is one of them. Even if your home is mortgage-free, you'll still need to cover the cost of property taxes, insurance, maintenance, and repairs.
Healthcare is another expense you might find burdensome in retirement, especially once you enroll in Medicare. In fact, there's a big Medicare change happening in 2026 that could leave many retirees reeling.
Image source: Getty Images.
The cost of Medicare Part B is going up
Most seniors don't pay a premium for Medicare Part A, which covers hospital care. But Part B, which covers outpatient care, costs money. And this year, the cost of Part B is rising substantially.
The standard Medicare Part B premium in 2026 is $202.90, up from $185 in 2025. Of course, some Medicare enrollees pay more for Part B due to being higher earners. So, that $202.90 cost doesn't tell the whole story.
But still, a $17.90 increase is pretty significant for Medicare Part B. It's not so unusual for the cost of Part B to rise from year to year, but a $17.90 hike is fairly substantial.
Expect your Part B premiums to eat into your Social Security raise
Part of the reason this year's Medicare Part B premium hike might cause retirees a world of stress is that it's coming at a time when Social Security's cost-of-living adjustment, or COLA, is not particularly generous.
This year, Social Security recipients are getting a 2.8% COLA. And while that's not the smallest raise to ever arrive, it's also far from the largest.
Prior to January, the Social Security Administration put the average retirement benefit at $2,015 per month. It also said that, following this year's COLA, the average retiree benefit would rise to $2,071.
That may be the case for Social Security recipients who aren't on Medicare. But for those who are, those Part B premiums are paid directly out of Social Security benefits. And a $17.90 increase in the cost of Part B is going to leave Social Security recipients with a much smaller raise than they may have bargained for.
If you're on both Social Security and Medicare, understand how an increase in the cost of Part B might impact your finances this year. And if you're struggling to make ends meet with what's left of your COLA, it may be time for other lifestyle changes.
Working part-time could help you boost your income more significantly if your Social Security COLA just isn't cutting it. You can work while receiving benefits from Social Security, though be mindful of the program's earnings-test limits if you haven't yet reached your full retirement age.
